Do you live in a fancy home?

Question

Nate Waters · Answer

@Sam Josh Only you can decide what type of lifestyle you live and what is important to you. Although not the best cash-on-cash return, the money I have spent on my personal home has helped make priceless memories for my family and me that I wouldn't trade for anything! Yes, I would have more money in my bank account if I didn't put in a pool and built-in BBQ/entertainment area in my backyard but my goal isn't to have the biggest bank account. My goal is to create great experiences and memories for my family while investing for the future.

To know your goal is to answer your own question.

Thomas S. · Answer

I have owned the same 3 bed 1+ 1/2 for 30 years. Owned since before investing. Too big now that the kids are grown. Thinking of downsizing.

For me a home is simply a roof over my head. Comfortable but nothing fancy. Any renovations my wife wants I do myself.

Lynn McGeein · Answer

We love our home and wake up happy every day that we live here, near our family and friends.  Not sure others would call it "fancy," but it is to us.

Brandon Ingegneri · Answer

Modest but everything done with attention to detail and quality.  The millionaire next door.  Its the way to be.  Have a nice home that isn't too flashy and have no mortgage.

Brandon Ingegneri · Answer

Modest but everything done with attention to detail and quality.  The millionaire next door.  Its the way to be.  Have a nice home that isn't too flashy and have no mortgage.

Jeff Filali · Answer

Everyone's "fancy" is different.  One man's castle is another man's shack!!

I choose to live a very frugal lifestyle, in what I consider a middle class neighborhood, but very safe low crime neighborhood.  Homes in my neighborhood were built in the late 1970s - early 1980s.  Mine was a foreclosure home before I purchased it, and has been fully updated over the last few years.  Its HOME to me, but I wouldn't consider it "fancy".

Levi T. · Answer

@Sam Josh You sound conservative with your money. You’ll be alright with whatever you choose, as long as it’s in balance in the end.

Joel Owens · Answer

I do not need a huge house. It is just more to maintain and keep up. I like having more money for enjoying life, traveling,etc.

Some people have a spend to earn ratio of 60% or higher. I like to keep mine really low and save for investing. As your cash flow increases each year then you slowly up your lifestyle but the percentages are still conservative.

It's kind of like the difference between someone buying a multi-million dollar house to live in that barely qualifies. They push things to the max and if one thing happens everything goes off the rails. Compare that to someone worth tens of millions who owns a 2 million dollar house. On a a percentage basis the spend ratio to liquidity and net worth is usually more conservative.

The key is to be conservative so if something happens you have room to adjust to the circumstances and still be doing good.